I don't mind them. This actually costs more than buying a stand-alone Xbox so it's not exactly worth it, but the scheme itself is good, hence why 90% of phone buyers get a phone on contract rather than buy it flat-out then and there even if it's not saving them any money.

Yeah, if you could get the *next gen* system for only $100 or so up front but had to pay like $50 extra over the course of two years, that would still make it tons easier for a lot of people to upgrade. I could see there being issues if you already have a Live account or especially a Family account though.